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1 EDITION CHAMBER S COMMUNICATOR POWERED BY RESEARCH & DEVELOPMENT DEPARTMENT, SCCI 01 MARCH-APRIL sialkot the City of opportunities A VISION FOR FUTURE COMPOSITES INSIGHT WITH FAZALJILANI Optimist Player Leader 2STEPS FOR BUSINESS COMMUNICATION DYNAMICS OF SIALKOT S SURGICAL INDUSTRY OPPORTUNITY KNOCKS THE DOOR A GLIMPSE OF ASTOUNDING APPAREL MARKET TRENDS OF EUROPE

2 And measure full when you measure. And weigh with an even balance. This is better and its end is good. [Al-Quran;Bani-Israel: 35]

3 Table Of Contents Editorial: Message General Secretary and R&D team Sialkot; The City Of Opportunities 3-4 Opportunity Knocks The Door; A Glimpse of astounding Apparel Market in Europe 5-8 Composite Sports Material; A Vision For Future 9-12 Dynamics of Sialkot Surgical Industry; Report on Sialkot surgical industry Insight with Fazal Jilani; President of Sialkot Chamber of Commerce Business Communication; 12 Steps for seizing your communication momentum Cybercrime; The new business priority App Store 30 Country In Focus; State Of Japan Importance Of Certification; Adoption of international standards Micro Financing; The gateway to success Spotlight on Women in Business United Against Child Labor Trade Fairs And Exhibition Credits 49-50

4 MESSAGE SECRETARY GENERAL MESSAGE R&D TEAM Dear Members, Dear Members, It gives me a great pleasure to present to you the Chamber s Communicator, yet another initiative of Sialkot Chamber of Commerce & Industry in continuance of the legacy and traditions of adding innovative value added services for its members. At Sialkot Chamber of Commerce & Industry, we are committed to provide you with updated information and to help you manage your businesses at par and also provide you with sufficient tools so that you can truly optimize yourself with the globalized world as an entrepreneur. Chamber s Communicator is the result of same commitment and dedication towards you as our primary focus and our number one priority. This E-Magazine would serve to provide you with latest information based on articles, reports and other data prepared by our dedicated Research & Development team. We have kept everything in our mind while preparing this magazine in order to play our facilitating role for new entrants and settled entrepreneurs of Sialkot s Industry. It has also been our desire to make the magazine s layout as attractive as possible using latest designing techniques and specialized tools in order to create a unique reading experience. We firmly believe that this monthly publication would become an essential tool for anyone related to the Industry and would be your first pick among other corporate magazines. We assure you that Sialkot Chamber of Commerce & Industry would keep on taking similar initiatives for the betterment of the Industry and we would be honored to get your support in making this venture better in future through your valuable feedbacks and inputs. Profound Regards, Tariq Mahmood Malik Secretary General It is an honor for the Research and Development team, Sialkot Chamber of Commerce and Industry to present the inaugural issue of our exclusive E-zine, CHAMBER S COMMUNICATOR. We feel extremely privileged and delighted to launch this new information vehicle. Sole idea behind this initiative is to serve the industry in very capacity we hold. Research and Development team is highly committed to provide updated information in order to help you innovate, enhance your business and compete in the international market. Chamber s Communicator is the result of same commitment and dedication. This magazine covers the different dynamics of industry ranging from skill development, product diversification, innovation and use of latest techniques and technology to changing market trends and potential markets to be exploited. It s a sheer effort to create awareness among esteemed members and to provide facilitative information. We have tried our best to cover all the sectors at par, though creating a balance among the various disciplines was quite a challenge. Our team is dedicated to take such challenges and come up with outputs optimized to your business needs. We assure you that this publication would serve the industry in all its respect and would prove to be an important addition in the value added services of SCCI. We would like to express our sincere gratitude to the worthy Office Bearers, Secretary General, Chairmen Committees and Executive Committee members for their constant support and sense of appreciation. Their candid views and contributions have really lifted our morale and replenish our energies in every possible aspect. We wish you all an interesting reading experience and look forward to your valuable feedback and treasured inputs for making this publication a success. Profound Regards, Umair Nisar Research and Development Officer

5 ew cities in Pakistan can claim to contribute as extensively to a country s Fexport revenues, industrial growth and global reputation as the city which is now popularly known as The City of Opportunities. Sialkot is an important economic center and the only totally export oriented city in Pakistan. Development of local cottage industries in Sialkot has assumed the model status for the developing world. Thousands of small and medium enterprises, situated in and around the city, are engaged in honoring their global commitments for export of value added goods. The city is earning over 1.9 Billion US Dollars annually through its exports in various sectors ranging from Sports Goods, Surgical Instruments, Leather Products, Gloves of all sorts, Textile items, Sports Wear, Martial Art Uniforms & Accessories, Musical instruments, Military & Police Uniforms Accessories, Highland Outfitters, Badges, Kitchen Ware, Hollow Ware to Knives and Cutlery items. The sweetest success of the city relates to BRAZUCA, the official match ball for the biggest football tournament on the planet FIFA world cup Sialkot Sports industry is the proud manufacturer of Brazuca which surely is a matter of great pride and honor for the whole Pakistani nation. But it s not the only cake in our plate, We are also the makers of Tango balls used in FIFA world cup Furthermore Sialkot made Footballs, Field Hockey Sticks, Cricket Gear, and Boxing Gloves are also used in international games including to Olympics and the World Cup. International Sports Goods Brands like Adidas, Nike, Mikasa, Puma, etc. are working with different firms in Sialkot. The best cricket and hockey players of the world prefer to use Made in Sialkot cricket bats and hockey sticks, which have made Sialkot a Household Name all over the world. In leather and textile products, the industry competes with other countries in quality and style. Sportswear industry, owing to a skilled workforce, and entrepreneurial skills of businessmen is also well established in the international market. The surgical instruments, beauty items, Eye instruments, and other Medical Instruments are supplied to practically all parts of the world. Top hospitals in USA, Canada and Europe use Sialkot made instruments in surgeries and other procedures. Thus, the city plays a silent but significant role in healing the wounds and fighting disease around the globe. Besides exceptional achievements in business, the corporate sector of the city has exclusively emerged beyond Corporate Social Responsibility and made historic contribution in social sector development and human welfare by initiating projects like Sialkot Dry Port Trust, Sialkot City Development Program, Sialkot International Airport, Sialkot Export Processing Zone, Sports Industry Development Center, Sialkot Business and Commerce Center, Sialkot Tannery Zone, Khud Kafalat Rozgar Trust, Scholarship Programs for deserving students, Child Labour Elimination Program in Soccer Ball industry etc.

6 OPPORTUNITY KNOCKS THE DOOR A GLIMPSE OF ASTOUNDING APPAREL MARKET TRENDS OF EUROPE While the global apparel market continues on its growth process, all regional shifting trends paint a mixed picture. But presently, Europe is an appealing market of textile and apparel products for all manufacturers as the scope of the textile products, has been puffed-up in Europe. But there is a loud proclamation for the entire textile & apparels manufacturers out there that this potential European market is undergoing transformation in several key areas; mounting use of Smartphone and social media has revolutionized the marketing tactics, consumer expectations for speed, services and transparency has risen which is forcing Brands and retailers to implement Omni-channel distribution strategies that align and orchestrate all the channels of a business and give the customers a single door to knock. The economy continues to recover slowly; many apparel companies are seeking expansion outside of domestic markets, and exploring new countries for partnerships and outsourcing. Following are the key indicators of European Market in respect of Apparel Industry. A shifting population age structure is increasing the importance of targeting the senior consumer group. In Europe, seniors represent a significant market opportunity for exporters as many people aged 65 or over have both purchasing power and leisure time. Furthermore, seniors may be underserved in the apparel market as there are few prominent brands addressing this segment as it is currently estimated that the population aged 65 years and over will rise from 17% in 2010 to 30% in Persons aged 80 and over will increase from 5% to 12% over the same period. In European market, Many apparel companies are becoming proactive with regard to responsible sourcing, which tackle a broad range of labor, social and environmental issues, including working conditions, sustainability, product safety etc. and European traders are focusing on the smooth flow of supply chain management of their products to provide them to their customers with effective means. Europe has nearly 300 million active social media users, accounting for 40% of the region s population, so the consumer s shopping habits are changing as a result of growing mobile, digital and social media usage. In addition to shopping for clothes in-store, people also want to shop on the web, through mobile & social media. The European Apparel manufacturers & retailers are increasingly investing in Omni channel retail strategies that align and harmonize all the company s channels and present a single face to the customer to facilitate them. Social media e.g. Snapchat, YouTube, Facebook, Twitter, Instagram etc. have become an integral part of the overall marketing mix in Europe to encourage consumers to visit online and other stores. The traders to track the demand of the customers of particular products. Through their social media channels and blogs with highly engaging, frequent and exclusive content, the European marketers attract & retain the customers. Another new way of engaging the customer is through crowdsourcing a participative online activity in which the company issues a challenge or a task and the crowd works together to come up with a solution. Through followers, companies can access a real need and demand of their customers. There has been modest growth in European retail sector over the last years, the economic outlook for retailing in Europe is optimistic due to rising consumer response and moderate growth in core economies such as the UK and Germany; consumers in these economies appear ready to spend. However, consumer spending may remain relatively subdued as a strong recovery in disposable incomes is not anticipated. Over the past few decades, European Apparels manufacturers are facing some issues related to rising wages, increasing production costs and substandard labor conditions are prompting Europe and many countries to rethink their sourcing models. European market has become well aware about the harmful chemicals used in the apparel production process. Textile dying and leather processing involve highly toxic chemicals that put workers at risk, and damage local water supply and related eco-systems. Many European manufacturers are reconsidering their supply chain and production processes. 5

7 The use of organic fibers is increasing; the production of organic cotton in particular continues to grow. Pioneering suppliers are also using natural and low-impact dyes, eliminating chemical additives and finishes, and improving wastewater treatment. Cotton is demanded more by every producer and consumer but cotton is one of the most water-intensive crops to grow. So, European manufacturers and importers are increasingly looking for materials and fibres that are sustainable and functional, such as those that are raw, natural, synthetic, and renewable or recycled. Many European companies are focusing to develop technologically advanced fabrics from new materials and also seeking improvements in textile processing and taking action to minimize their carbon footprint, water use and waste. In Europe, Environmental and humanitarian organizations are tackling an ever-broadening range of issues in the apparel industry, including sustainability, working conditions, energy and resource conservation. As a result of intensified efforts of such organizations, European apparel companies are becoming more proactive on corporate social responsibility issues as they learn from their mistakes, or the mistakes of their peers. Europe is a major trading partner of Pakistan. The cake of the European market is now topped up with the GSP Plus status granted by European Union which has given better market access to the products made in Pakistan. Pakistan s exports to the EU are dominated by textiles, clothing and leather products which accounts for 75% of the total exports to EU. Pakistan has a golden chance to cash the opportunity of GSP plus status as well as the above cited changing trends in the European Apparels market to boost up our export level to our real potential. Pakistani exporters should make an effort to understand and cater for the specific needs of senior aged consumer group by monitoring the media and major retailers. Creating product lines and collections that target specifically the seniors considering the common ageing factors in designing products like Work wear, Leisure and outdoor wear, Accessories, Sportswear etc. Owing to the transformation in the European sourcing model there persist a flashing opportunity of collaboration with European buyers and to encourage long-term sourcing relationships. For this purpose we require an effective supply chain that demonstrate your sustainability proposition and commitment to socially responsible. To collaborate with the European apparels market, Pakistani textile exporters must keep eye on the websites of some of Europe s best Omni channel retailers. Download their apps and explore their social media presence e.g. Topshop (UK), Kiabi (France) and Oasis (UK) etc. for the purpose of analyzing the purchasing habits of end customers and coordinate with them. Instead of trying to serve or compete against mega retailers with large volumes in Europe, Pakistani exporters can focus on customization, small niches, and pre-production services and diversify production to extend the share of export in Europe. Another important factor Certification/standardization must also be considered for sustaining and enhancing our trade relation with Europe; Pakistani industry must focus on the European Union chemical policy and all substances of very high concern identified in the relevant legislation (EU REACH). Exceed European standards and try to excel in environmentally friendly processes, by becoming a member of IAF International apparel federation in order to receive the latest updates on chemical and legal issues in the sector and connect to testing bodies like SGS, TUV or Intertek. Use employee and facility certification in marketing materials and highlight a chemically safe work environment and the preservation of the local ecosystem as core company values. With focusing quality assurance, Pakistani exporters should become a member of ETI (Ethical trading Initiative) and consider how our facilities and processes can be improved to have less impact on the environment e.g. thinking about trying new, more efficient dyeing techniques etc. according to the current demand and trends or our targeting customers. It is understandable that the European market has been significantly saturated. But with innovative strategies exporters can always find new gaps. Considering the shifting trends of European market, it is high time that exporter s should consider embracing new strategies and models in order to penetrate European markets more effectively. One example would be of setting a click and mortar model of business which allows the business to have physical as well as virtual presence (E Commerce Website). This would actually open the doors for the exporters to target end users via website and bulk importers as well. The model would demand warehousing practices to be adopted as well as effective supply chain processes. Through click-and-mortar business model, Pakistani exporters can offer customers the benefits of fast online transactions or traditional face-to-face service in Europe. Pakistan has miserably failed to take advantage of the GSP plus status extended by the European Union (EU). The GSP plus is conditional on the ratification and implementation of 27 international conventions in the areas of human rights, labor standards, environment and good governance. The overall textile growth in the export to EU in the last year remained nominal against the estimated growth percentage because of noncompliance of the conventions. The need of hour is to gear up and not only follow the changing trends in targeted markets but to change within.

8 COMPOSITES A VISION FOR FUTURE Innovation fuels business growth. The ability to keep on generating winning ideas for new products and services is one of the keys to business success. We work in a business environment where our ability to compete depends on our ability to innovate. There is a continuous change in taste, fashion, demand, requirements and trends of market, so every businessman is in dire need to revitalize its capabilities and come up with improved end products. Sports manufacturing field witnessed a splendid example of innovation, the world has moved towards the use of Composite Sports Equipment s leaving behind the traditional materials like wood and metal alloys A composite material is defined as a combination of two or more materials differing in form or composition on a macro scale that retains their identities. New and innovative sports equipment can be developed by introducing lightweight materials in modern day sports industry production lines. The properties of these new materials are expected to result in improved ergonomics, energy savings, increased flexibility and more robust equipment, which in the end will result in enhanced productivity and profits. Composite materials are one such alternative that has excellent material properties. These properties are well documented, and the market for carbon composite materials is growing in many areas such as commercial aircrafts, sporting goods, etc. Composites are able to meet diverse design requirements with significant weight savings as well as high strength-to-weight ratio as compared to conventional materials. Composites such as glass/epoxy and carbon/epoxy, among others, have replaced metals and wood. The anisotropy of these materials allowed the inclusion of greater resistance in applications where it is very necessary, like skys and protective gear. These composites offer greater stiffness, fatigue strength and damping in comparison to metals. One of the most recent developments is the combination of composites with other materials, depending on the desired properties; the combination of different materials is such that the necessary and optimal properties are achieved. Year by year, more and more designers and engineers recognize the values of composites over other traditional materials like wood, metal alloys, plastics etc. in the global market. FRP (Fiber Reinforced Product) are more reliable, more durable, easy and safe to use, more economical to produce, and individually solve many problems and offer many benefits. As a result, manufacturers are abandoning old materials and fabricating methods and are turning to composites. So, it is used in aerospace, defense, sports articles, busses, trains, boats and high tech products for achieving high structural performance at a low cost. Sialkot has been a center of excellence for the production of sports goods for more than 100 years. The first record of manufacturing of sports goods in Sialkot can be traced back to 1883 when Sardar Bahadur Singh and Sardar Ganda Sigh Oberoi built a factory to produce sports goods for the British Army soldiers stationed in the northern sub-continent and receive lots of appreciation. The products manufactured were wooden, such as cricket bats, hockey sticks, polo sticks, etc. Sialkot Sporting goods industry that had been cashing applauses from round the world as quality producers but is presently facing a deteriorating phase because our industry is still stuck with the ancient legacy and ceases to equip itself with the emerging demand of Composite Materials. Pertaining to the need of Sports industry, a National Centre for Composites at NUST College of EME was established in 2011 to uplift the composites Industry of Pakistan but the project ceased to generate fruitful results.

9 For capturing this targeted future market, Strong developmental activities focusing primarily on products & processes need to be pursued in Pakistan. Towards such an objective, a multi-agency approach involving the industry, Government, academia, research laboratory, certification/standardization and user agencies would be required for a quantum jump in composite technology in the country. Thus, the need is to consider some areas e.g. Application development, Fabrication & testing support, Availability & pricing of raw materials, Manpower training, Technical support services for materials & process selection, process optimization & design, product quality improvement etc. Government support is indispensable in this regard. Government can support in many ways e.g. by Inclusion of basic raw materials required to manufacture composite based Sports goods under zero rated head, duty free import of materials, Exemption from electricity load shedding and gas supplies to industrial units, tax incentives, finance assistance through soft loans, simplify the DTRE schemes, Exemption of licensing from exporting countries for carbon material into Pakistan for sports goods manufacturing, Helping to form joint working groups with Chinese manufacturers to bring latest manufacturing technologies into Pakistan, TDAP assistance is required to send more delegations of composite based sports goods manufacturers to visit composite industrial units in china, Taiwan, Korea and by organizing Composite exhibitions, shows and seminars. To strengthen our sports industry some immediate steps need to be taken. There is a crucial need to develop strong linkages with the academia like School of Chemical and Material Sciences (SCME) University of Sciences and Technology (NUST), with the faculty of Material and Science Engineering (FMSE) etc. for improving the process control parameters such as cure cycles. Safety and quality standards in the production and international trade of resin system must also be ensured. Some other areas of concern like indigenous production of high performance glass and carbon fiber, training facilities in designing and manufacturing techniques, recycling of material in low tech sector, health and safety awareness, legislations, sporting infrastructure, up to date knowledge and Local production of fibers and resin to bring down the cost and ensure continuity and reliability of supplies also ask for attention. In order to restore our mark in international Sports goods market a number of golden opportunities wait our way. There is a tremendous potential for composites in the near future, products like Canoes and Kayaks, Vaulting Pole, Golf & Polo rods, Archery equipment, Javelin, Hand gliders, Wind surfer boards and Protective sportswear etc. are all made of composites and Pakistan s composites industry is at an emerging stage with respect to this market segment.

10 DYNAMICS OF SIALKOT s SURGICAL INDUSTRY Sialkot is the hub of dental and surgical equipment and instruments in addition to sports goods and cutlery. Surgical industry originated in the early 1940s in and around the city of Sialkot. Though the industry has little share in the domestic market but it is basically generating a handsome foreign exchange through exports of more than 90% of its production. The inception of this craft in the region dates back to pre-partition era when the craftsmen were traditionally involved in forging of metals, particularly for knives and swords etc. and the British Mission hospital in Sialkot for the first time got its scalpels and other instruments repaired from the local artisan community of blacksmiths. After that, British Government established the Metal Industries Development Centre (MIDC) in 1941 for helping the industry to shift from manufacturing of basic metal products to precision surgical instruments. After Independence, Surgical Instrument Manufacturing Association of Pakistan was incorporated which safe guarded the interests of the industry. Presently our industry produces different instruments, mostly made from stainless steel. Surgical instruments made in Sialkot are used by surgeons, dentists, and veterinarian round the globe. Over 99% of the Pakistan's surgical instruments production is centered at Sialkot. According to the statistics provided by Surgical Instruments Manufacturers Association of Pakistan, there are about 3400 member firms and more than 150,000 workers are grossly engaged in manufacturing of surgical instruments to meet the export commitments in the International Market. Sialkot surgical industry produces on average of over 150 million pieces a year with an estimated value of around Rs. 22 billion. Out of the total production, approximately over 95% is exported, which includes 60% of disposable and 40% of reusable surgical instruments (according to RCCI report). United States, Germany, United Kingdom, France, Italy, UAE, Japan, Brazil, Mexico, Russian Federation are the Top Ten buyers of our instruments, and production is made in accordance with their required standards and certifications. Surgical instruments can be generally divided into six classes by function; Cutting instruments, Grasping or holding instruments, Haemostatic forceps (instruments used to stop blood flow), Retractor, Clamps and distractors, Accessories and implants etc. A broad range of surgical instruments are being manufactured: Diagnostic Anesthesia Instruments Suture Plaster Bone Surgery Neurology Tracheotomy Cardiovascular Lung Surgery Dermatology Ophthalmology Otology Tonsil Oral Instruments Urology Sterilization Obstetrics Gynecology Intestinal & Stomach Rectum Beauty Instruments The International Market is about $ 30 Billion where as our share is $ 330 Million which signifies the need to cater the big cake available out there. It s high time to ponder how we can overcome the shortcomings to enhance our exports.

11 Major Constraints of Surgical Industry In today s dynamic world, technology plays vital role in the development of any field. But due to lack of awareness among industrialists about the latest technology like CNC Machines (Computer Numeric Control), MIS (Medical Invasive Surgery) Instruments etc. not much revolution has been witnessed. One of our major concerns is lack of technical assistance and well equipped staff. Sialkot Surgical industry has a legacy of manufacturing world s best and finest products but unfortunately we are still working as vendors for the other exporting countries. The concept of developing our Brand names still haunt us as an impossibility but its high time to turn the tables around and emerge as Individual brands. Research & Development is the need of today s business. Non-adoption of research and development by manufacturers and exporters is also a major problem. There is an urgent need that businesses establish research and development cells in their premises and allocate a certain percentage of their profits precisely on research and development. institute/center, where current labor force could be trained for enhancement of their manufacturing skills and new entrants could also be trained in this institute. Finance is another issue of the cluster, especially for small enterprises. There are a number of financial institutes and leasing companies present in Sialkot, providing financial services. But SME s that constitute the major portion of the industry, are unaware of how to avail the loan facility. Recommendations The burning issue of this industry is, skilled labor availability and this problem can be resolved by the mutual efforts of government and business community. Govt. must establish the new training and vocational centers under TEVTA to equip the labor force with necessary skills and to give them the confidence to recognize the worth of their degrees. Awareness seminars, technical and on job training courses should be arranged time to time in order to minimize the mounting threat of losing the skilled labor because of improper skill transfer to the next generation. In surgical field, there is a crucial need for developing R & D Department to work for the betterment of the production process as well as for product development. On the other hand, R&D departments must be established to explore new and unexploited markets as our major customers are USA & Europe but still there is a large scope for us in the potential markets of Iran and Japan were our share is merely 0.1%. With the vital need of Human Resource in surgical industry, there is also a crucial need of Financial Resources. In Sialkot, most businesses are related to small industry so, finance is the basic need but SME s faces a lot of problems and issues. Strong steps need to be taken by the government for the establishment of Exim banks & promotion of Micro Financing for enhancing national and global trade. For promoting our global business of surgical items, we must have complete awareness about quality standards e.g. ISO and CGMPs etc. and must try to implement them fully to build up the trust on our foreign customers to sustain in such a competitive world. Along with improving the quality standards,the industry also requires a shift towards process improvement. Tools and techniques like Six Sigma need to be focused upon to minimize the chances of errors and defects for achieving excellence. Success in every business calls for innovation and a constant urge to modernize, businessmen must focus on new methodologies of production and try to adopt the latest technology (e.g. CNC machines and MIS etc.) in different sections for manufacturing process. Despite the fact that we produce an immense quantity of surgical items but still we are far behind in case of Marketing of our products to increase the trade round the globe. There is lack of presentation in our products in every aspect. Especially, in trade fairs and exhibitions, TDAP must facilitate our traders in this regard. Exporters of Sialkot are the foreign exchange earner for the country, so the concerned authorities must take steps to communicate with government to reduce the anxiety of the traders related to tax issues. Organizations are made up of people, who are the building blocks. But there is no proper HR management to manage our precious human resource. Enterprises consider placement of a professional or business graduate as a waste of money; moreover, the professionals are misconceived as another exploitation tool that might steal their business secrets. There is a growing need of a surgical training Transportation is the backbone of export and industrial sector as a heavy portion of the product cost of an exporters include the transportation expenses and cargo charges. This issue must be resolved through; Government must invest in the improvement of physical and financial infrastructure including shipment, clearance, cargo system, handling at the

12 the ports and airports for smooth flow of export. Today, China and other competitive countries are entertaining with long term trade deals at reasonably low rates to sustain their customer for long-run. But Pakistani exporters fail to adopt such strategies because of constant fluctuation in prices of oil, gas, electricity, material s cost etc. Therefore our exporters could not reach out to their real potential. Government and other trade related bodies must perform their role by framing some long term projects in this regard. We cannot ignore that 80% of our export depends on single-use products. But we should focus on the pricing of them collectively to make the strength of our products in international market. There is need to reconsider our pricing strategies of re-useable products and single-use products. The leading manufacturers and exporters should be encouraged to develop their own brands and labels. The highest level of value addition occurs when products are sold under a brand name. It s high time for Pakistan to exploit the opportunities available at international level. Govt. should extend its support in this regard. Such steps will ultimately flourish our trade. Internal manufacturing processes should be rationalized by implementing Lean manufacturing technique, thereby reducing the Non-Value Added Processes which confine to the limited scope of production. The proposed strategy would help a long way reducing the lead time and increase the dedicated capacity/order fulfillment rate of the organization. We need to encourage and promote surgical industry and try to expand its scope by incorporating electro medical equipment into it. For this we need to bring in Gujranwala and Gujarat based industry which has some experience in the electrical and electronics manufacturing. Pakistan has great potential to exploit the international markets as we have skilled workforce, talent, resources, strengths and opportunities to make the way to success. Moreover, there is large scope of triumph in this market. But, need of the time is to innovate and enhance the technical assistance for excelling in the International scenario. NOTE: Detailed report on Surgical Indusrty can be accessed through Website: Geographical Concentration Economies of Scale Availability of Inputs. Skilled Labor Force Concentration of Core Competencies Wide Product Range Minimal Involvement of Brand Names No proper marketing & Distribution channels Lack of technical personnel Lack of product Development Lack of technological advancement Diversification Manufacturing Flexibility Unexplored Markets Information technology Joint Ventures Upcoming Completion. Quality System

13 INSIGHT WITH MR. FAZAL JILANI We had the opportunity to interview the MAN himself MR. FAZAL JILAN, President Sialkot Chamber of Commerce and Industry. He shared with us bits of his personal and professional life. for me to idealize others. I believe in idealizing your own self, dig out your flaws and potentials and chalk down your own way to success. Your favorite brands? How would you describe yourself in one word? Well to play it safe I am not at all brand conscious (chuckles). Jokes apart, I love to Oh I just realized I am a celebrity dress up and accessories whether it s a (chuckles). Well it s quite a task you have trendy jacket, an elegant watch or a fancy given me. To be very honest and precise I perfume but it s not compulsory that it had would say OPTIMISTIC. I always look to be a top brand, it can be any anonymous for something new to be excited about and one but of good quality. Being upfront I enjoy even the simplest things in life. would name Gucci, LV and Hermes. What was your childhood aim? How did you get into the business world? Why did you chose surgical as your Like every other child I also dreamt to fly company s product line? high in the air with my plane roaring through the stormy winds but later as I I wanted to peruse cricketing career but grew up the inborn cricketer inside me there were so many responsibilities waiting stared hatching out of the shell and then my way, so had to quit and join family there was no other passion except cricket. business. My family has a great legacy of surgical business which transferred Any ideal personality you look forward generation after generation. But yes, now, I to? often think of bringing diversification in business. In future you might hear about Ans. I am not the kind of a person that looks some new experiments as I believe our out for ideals I believe your mistakes and industry has great potential for new the biggest yet harsh reality of life TIME dimensions to be explored. are your true ideals; you just need to learn from them and move forward with no regrets. Every person has a darker side to his personality, so it is not practical at least 9 You are famous in the industry as a most burning one is insufficient transfer of talented cricketer, does your sportsman skill to upcoming generation. Skilled labor spirit helps you in professional life? is the asset of our industry and if we fall short of this strength in coming years, our Oh yes of course, it would not be wrong to industry would cripple. It s high time for say that this sportsman spirit taught me the TEVTA and concerned authorities to mantra of life fight till the last ball. I no establish new training and vocational longer fear failures rather I take them as a centers for attracting labor and new comers challenge for achieving success in future. It in this field. To equip them with latest has taught me to maintain balance, set knowledge and make them capable of targets and to dream victory. Once you gear identifying the worth of their skill. Secondly up yourself and have faith you can do we are in dire need of some bold and sound wonders. This spirit has instilled much support from the Government for catering positivity in my personality and I can feel major issues like energy crises and law & those vibes even in my lowest times. order conditions because ultimately political stability leads to economic uplift. Your major concerns as a businessman? Thirdly, our economic policies call for serious revision, pending funds awaits Various issues need serious actions but the government attention.

14 As a Businessman where you want to see yourself in next 5-10 years? (being sarcastic) In a luxury lounge in England passing quality retired life (laughter). I never plan things, just follow the wave. Actually I am the sort of a person who prefer to live in present then to dream What according to you is the future of Sialkot Industry? Very bright (In sha Allah). Sialkot truly is the city of opportunities; we have great potential and capacity to grow in all aspects. It s just a matter of time and some earnest efforts to be on top. We have the most skilled and experienced labor, intelligent and innovative brains with exceptional ideas, all we need is a sound back up by higher authorities to excel and conquer. What do you suggest to budding entrepreneurs, and how can they become giants like Surgicon? It might sound typical and primeval but the ultimate key to success is hard work. Devotion and hard work are the major fuels for speeding up business; my suggestion would be to live with this theory. Every person has some driving force that keeps him on the track, the winning formula is to keep that driving force alive and to be honest with your ambitions. As a businessman, you need to be the master of your own craft and must know how to sell it in a decent and respectable way. Your secret recipe of success? To put it in most simple way I would say Darood Shareef. I don t tag myself as a deep religious person but it is my faith and spirituality that has led me to what I am today. I have a strong belief that you will get what Allah has planned for you regardless of how you get it. Have trust in Allah and yourself and pray to Almighty even for minute things because ultimately He is the creator and has power over all. The more you spent in the name of Allah the more you get in return, so be generous and never lust for power or money. Being an apex body what is the role of SCCI for the betterment of the industry and what is your kind vision for the industry? SCCI has always worked for the betterment of the industry, our aim is to take this industry to new heights. The major role of this Chamber is to identify the problems and grievances of our business community and to dig out appropriate solutions. As SCCI President, I wish to upgrade the standards of every business house. Sialkot Industry has had a successful history and I want to further that name and success by backing up my business community in every respect. All we need is creativity, innovation and out of the box approach, these traditional tactics call for a change. This change can be instigated through investment in Research and Development. My priority is to pave the way for development. Since when are you associated to this Chamber? How did you see this chamber grow? As much as I can recall, I came this way in and since then there was no looking back. I have witnessed many highs and lows but what inspired me the most is the continuous motivation of our members and employees. What do you like best about being an SCCI President and what you like least? Well I enjoy my share and responsibility for heading this apex body. I fancy the respect and learning that I gained. Disliking would not be the appropriate word but what is the toughest thing for me is to manage my both profiles, actually I am a very outdoorsy person and this position demands me to be very formal. I guess with the time I have grown to enjoy them both. Being a successful Businessman and SCCI President you have quite a busy life, how do you manage your personal and professional life? Honestly, it s very difficult to maintain balance among personal and professional life and I think a man who is capable of it is a champion. I try my best to keep up to both sides but then again I am a human. Yes my family especially kids often complain that I am always short of time but at the end of the day they also realize that I have my own commitments. Any message for Chamber s staff? Be honest and value your responsibilities, do not take anything for granted. You are here for a reason and your aim should be to utilize all your abilities and capacities to serve this organization. You all must understand and embrace that you can contribute to our industry and your earnest contribution can do wonders. Consider your job to be bolder and more ambitious than anything you have ever done. Your primary motivation must be to serve the industry and to build something lasting, not to run after money. Absorb all positive energies around you and resolve to be the kind of employer who strives to bring passion and positive energy to the workplace every day.

15 BUSINESS COMMUNICATION 2 STEPS FOR SEIZING YOUR COMMUNICATION MOMENTUM The ability to communicate, and communicate well, is one of the biggest factors in business success. You could be an excellent businessman, but if you re unable to promote your product and communicate effectively with customers, your potential is limited. Your success at getting your point across can be the mere difference between sealing a deal and missing out on a potential opportunity. Every business professional and entrepreneur believes they are good communicators, but the question is how do they know? Basically it s the perception of the recipients that counts, and poor communicators are almost always poor listeners, so they don t hear the shortcomings. Warren Buffet, the famous American business magnate, investor and philanthropist once told a class of business students that better communication could boost their value by fifty percent. That s certainly worth going after, so it is time for all businessmen and entrepreneurs out there to take a hard look in the mirror, recognize the need to improve, and brush up their business communication skills. But looking in the mirror doesn t help unless you know what to look for. Here are some points worth looking and implementing. Ask the right question at right time Part of selling your product is being able to understand the customer s unique needs. You can do this only by asking questions that get to the heart of the outcomes your customer is looking for. Once you have a clear understanding of the specifications that the customer require, you can pitch your product as the best possible option for him. Communicate professionally Your professionalism can win you big deals, and your communication skills add to the complete package. Take time to proofread all s prior to sending; use a business address with a proper signature; answer the phone professionally; and speak articulately and competently at all times. Schedule and Prepare Thoroughly We re all busy these days, so scheduling the meetings in advance ensures that both the parties have an adequate amount of uninterrupted time to speak. Once the meeting is scheduled, take time to prepare an agenda that outlines focus points and sets a structure. Sharing the agenda for the meeting gives both the parties an opportunity to fully prepare, sending a reminder and the agenda the day before is also a good practice. If you are unsure how to format an agenda, plenty of templates are available for free online. Speak, Pause, Listen When you have several issues to tackle, rushing through them to get all of your ideas out may be tempting. But this causes confusion and makes the other party feel that their input is not important. Slow down, and remember that communication is a two-way street. Establish a give-and-take that allows both parties to have their say. One way to become a better listener is to limit or eliminate distractions during your conversations. That may mean closing your , keeping your cellphone silent, avoiding any noise in background etc. by doing these small things, you ensure that the customer has your full attention, and they will sense that, too. Follow Up in Writing While you may be taking notes during phone or in-person meetings, the other party might not be, so follow up after the meeting with a written message, giving an overview of the discussion to make sure you are both on the same page. Summarize what was agreed, repeat questions that were raised and outline the next steps and responsibilities for both parties. In addition to sending your notes, invite the other party to give their feedback on what you have sent. This way, it becomes a collaborative document and not just one person s view. Ask for Feedback One way to maintain long-term relationships with your customers is by keeping open lines of communication. This means asking them for their input on how things are going and how they feel about the products you re providing. Giving and receiving feedback in business communications can help ensure that important messages get across as intended, identifies problems before they get out of hand and creates a more efficient operation and also allows the businessman to respond promptly and efficiently to concerns and suggestions. Now the query is how to take feedback? This can be accomplished by simply inquiring at the end of meetings, during day-to-day conversations or through formal surveys. The format matters less than the actual act of it, so work it into your business as you go along. It is the age of internet and technology

16 surveys use online service that tracks responses for you. There are several online services that should give you enough functionality to conduct effective surveys. Here are a few worth checking out e.g. PollDaddy, SurveyMonkey and Zoomerang Address Problems If any customer is unhappy, don t ignore their complaints. Ask them why they are unhappy and what you can do to fix the situation. The longer you wait to bring it up, the worse it will get. Addressing the issue and being accountable when appropriate puts you on the path to resolution. And your willingness to face the problem head-on tells that you value your customers and consider their satisfaction. Try a New Format If a problem with your customer stems from miscommunication, try a different method of communication. If you have been handling everything via , schedule a phone call to see if that clears things up. After the call, you can summarize the conversation in an , which will give you another opportunity to get both of you on the same page again. Today, so much communication is done via that the opportunity for major miscommunication is almost inevitable. A rule of thumb is to limit your to one screen-full (i.e. above the fold); anything that requires more space than that should be handled by phone. This should help you avoid some of the pitfalls of relying on alone. Communicate Confidently Be confident and use body language to support that confidence. Shake hands firmly, smile and make eye contact while communicating at live business meetings. Don t forget to bring business cards to hand out to everyone you meet, and remember to relax and be yourself. While communicating on phone keep your voice soft and humble. Always speak in your personal style, never try to pose as it can put you in a trap. Use short and appropriate words and don t run, take required breaks and allow the other person to complete their point of view. Prepare a Formal Introduction A formal introduction helps you make the most of a first impression. Always be prepared with your introductory words and ready to answer common questions about your business and what you do. Practice your introduction in your free time so that you are relaxed and comfortable while introducing yourself on bigger platforms. Be Responsive A big part of marketing is being available to your target audience and following up when necessary. If you market your business through social media outlets including Twitter, Facebook and blogging watch for and respond to comments, questions and especially complaints. And when you are contacted as a result of offline marketing activities, respond quickly and professionally. Write Well You can t successfully promote your business if your Business Profile is not clear, concise and action-provoking. If writing is not your forte, consider hiring someone to help you craft profile that attracts potential customers. POWERFUL COMMUNICATION BETWEEN PEOPLE PLAYS A CRITICAL ROLE IN A COMPANY S BOTTOM LINE WITHOUT IT YOU RE A TOAST

17 Owing to the precarious cyber threats in this digital world where data rules, Companies need to realize, the danger to their margins, their brands and even their continued existence, which is no longer an abstract risk they can ignore. Information security probably isn t something that gets a lot of executive attention unless they become a victim of one. Voices about latest high-profile cyber-attacks might elevates your blood pressure for some time as you think about its repercussion to your company, but at the end of the day it gets lost in the bubble as you get involved in more pressing issues leaving the state of your company s information security to the background and you never give it a second thought unless it traps you in its clenches. In our industry information sensitivity is often underrated and issues of theft and cybercrime lacks the attention they require. Companies should consider this issue seriously to avoid theft of customer data, disclosure of confidential financial information, a disabled Web storefront, financial losses, intellectual property theft, reputational damage, fraud or worse. Today the danger of cyber espionage is looming large in offices across the world. Whether it s a multinational or a small and medium business, none is spared from this menace. Most small and medium businesses don't believe online criminals would target them, and it's true that most never would be a victim of an extortion threat as a multinational would be. But still they can't count on their smaller size keeping them out of harm's way. However large or small your business might be you need to be well aware of the risks open to you. It is high time for companies to understand that they are up against many threats in this battlefield, each having a different motive. It s more convenient to visualize your business as a ship in water with these threats as storm waves, swirling around your business. At any given time, it is impossible to know which wave will hit and what type of damage it will wreak. The first and oldest wave is nuisance hacking, in which there is little material impact to the company. A classic example is hackers defacing your company s website. More serious and widespread is the second wave, which is hacking for financial gain. As business has migrated to the digital world, criminals have, too. This type of hacking now goes beyond blindly stealing of exporters database or passwords. For example, hackers might target a company s financial function in order to obtain its earnings report before it is publicly released. With such advance knowledge, they can profit by acquiring or dumping stock. is associated with state-sponsored espionage. The motives go beyond financial gain. Experts may quibble about the specifics of this type of attack and whether it always has involved use of advanced techniques, but this is a serious and growing threat. Finally, there s one more type of threat that is on the rise: hacktivism. The goal of perpetrators is to change or create a public perception of your brand. For example, hackers might obtain sensitive information and disclose it to the public. The exposure to cyber threats grows as businesses invest in new technologies like smartphones and social interacting sites. Mobile, in particular, challenges the business because suddenly corporate data can be widely accessed outside the enterprise. And employees often don t realize the risks being introduced when sharing, sending, or receiving corporate information on a smartphone or tablet, especially if it is a personal device. Similarly, the use of social media for business purposes may leads to data leakages thus disclosing sensitive information. Protecting the business from cybercrime is one thing, but companies also must worry about a new type of risk the advanced persistent threat. If you think the term sounds like it s out of a spy movie, you re not far off. This type of hacking is predominantly about stealing intellectual property and typically

18 TOP TEN PAID FIREWALL SOFTWARES Small businesses are more prone to such threats because they have less resources to maintain their defenses. 1. Panda Global Protection ZoneAlarm PRO Firewall 3. F-Secure Internet Security (2015) 4. ESET Smart Security 6 5. Norman Safeground (Personal Firewall) 6. Net Firewall 7. Rising Firewall (TERMINATED) 8. Outpost Firewall Pro 9. Online Armor Premium 10. Bit Defender For minimizing the cyber threats exporters need to maintain separate accounts for their customers. Sensitive information sharing via s must also be checked as hackers might interrupt your s changing personal information like bank account no. and sabotage your business dealing leaving you in great loss. There is need for cautious investment in technology sections. Businesses must avoid using second hand and low quality systems, free anti viruses are of no use. Paid antiviruses like Avast, Panda, Kaspersky, etc. and paid firewalls should be used. Small and medium enterprises might not consider their sites anything worth being hacked but security should never be compromised. Web development is most crucial, substandard servers pose serious threats to sites and are more prone to be hacked. Web developers dodge people by using same code templates for bulk of websites making them more vulnerable. For securing business penetration testing can be a useful tactic. It is a certified ethical hacking mechanism that intrude your business environment for identifying the loopholes. Unfortunately, if any business falls prey to cybercrime, the immediate remedy is to change passwords, maintain back up of all important documents, contact the respective web developer and demand to rectify the issue and last but most important contact FBI to register your complain. Information is the most valuable asset for any business. Therefore, as a make-or-break business issue it is very important for every business to acknowledge the value that security brings, the need of the hour is to ensure that you have comprehensive strategy in place to deal with such menace. EXPENSE MANAGER A simple inancial manager tool for keeping tabs on your expenses. Track income, expenses, and account transfers plus back up then sync to the cloud. DROPBOX A multi platform ille synchronization and sharing tool. Simple to create and share folders and allow access to earlier ile versions BASECAMP A core project management tool for tracking schedules, iles and to do lists. Great for day to day projevt overviews. CAMSCANNER A document scanning and sharing app to scan, sync, share and manage various contents on all devices. It makes the contents easily accessed, organized and the collaboration ef icient. STORE CARD MUNCH A mobile business card transcription service that captures business cards and creates contacts in user s phone.

19 Country JAPAN in FOCUS Fall down seven times stand up eight A famous Japanese proverb rightly paints a broad-brush sketch of the Japanese nation that rose from the ravages of the Second World War and rebuilt itself into the world s third largest economy. This "economic miracle" from a mainstream economic perspective was an achievement applauded loudly by the entire international community. Japan s economic success is not just a bench mark but a glowing inspiration for countries like Pakistan that are struggling to join in the race of developed economies. Today, Japan is a major aid donor and a source of global capital and credit. Its role in the international community is highly considerable. Japanese market has looming potentials for export oriented countries. More than three quarters of the country s population live in sprawling cities on the coastal fringes of Japan's four mountainous, heavily-wooded islands. The country is divided into nine region and 47 prefectures. Each region is economically independent and has its own initiatives for foreign trade. Tokyo being the capital is the hub of major economic activities, while Osaka is famous for its clusters of Textiles, Fruit & Vegetables, Pharmaceuticals and SMEs. Japan is a market that holds scintillating opportunities for export oriented countries like Pakistan. Both the countries have shared healthy relations and ever since the establishment of diplomatic ties in April 1952, Pakistan-Japan relations have steadily progressed. Japan has always been at the forefront whenever Pakistan was in need. Though Japan is an important trading partner of Pakistan but the trade volume between the two countries is far below the potential. Despite having immense prospects of growth, the trade balance remains in the favor of Japan. In 2012, Pakistan exports to Japan were USD 386 Million while imports were USD 1.8 Billion, while in 2013 Pakistan s exports to Japan were USD 438 Million and imports were USD 1.42 Billion. Pakistan s share in the Japanese market was 2.6% in

20 2013 which is far less the actual potential. The Japanese market dynamics illustrate a wide scope for our industrial and agricultural products as they are presently importing items ranging from Sports Goods, Surgical Instruments, Leather Products, Gloves of all sorts, Textiles Items, Sports Wear, Musical Instruments, Knives, Cutlery items, and Badges from other countries. The market trends depict that the time has come to gear up the expertise of our industry and cash in the flashing chances available out there. It may be noted that Japan imports 97% of its textiles from China only. However, there is a decreasing trend in imports from China for the last three years. Last year, there was 7% decrease in imports of textiles from China. This opportunity is being captured by Indonesia, Vietnam, Bangladesh, Thailand and India. Pakistan should not miss this opportunity. Extensive marketing efforts should be under taken. Japan should be declared by TDAP as focused country. Similarly, Japan is the largest importer of food items in the world. Pakistani mangoes have already made inroad in this market. Reinforcement efforts are need of the hour to make a full fledge entry in this market. Moreover, Japan would be hosting World Olympics in 2020, opening window for our sports goods. It is a big opportunity for Pakistan that Japanese companies especially in textiles are looking for alternate placement of orders under China plus one policy. Furthermore, Japan is a growing market for Halal food, especially the processed halal food and the graying society of Japan is offering opportunities for our agriculture, nursing and paramedical services. The demand of all these product in Japanese Market calls for the most ideal scenario for Pakistani exporters, all we need is to think smart and cash these unplugged opportunities at right time with right tactics. JITAC European Textile Fair Date: March 2015 Sector: Textiles and Fashion Accessories Venue: Tokyo International Forum, Tokyo Website: Fashion World Tokyo Date: Apr 2015 Sector: Leather and Fashion Accessories Venue: Tokyo International Exhibition Center (Tokyo Big Sight Website: International Shoe and Leather Goods Fair (ISF) Date: Apr 2015 Sector: Leather Goods Venue: Ikebukuro Sunshine City, Tokyo Website: Premium Textile Japan Date: May 2015 Sector: Textiles Venue: Tokyo International Forum, Tokyo Website: Design Festa Date: May 2015 Sector: Apparels and Fashion Accessories Venue: Tokyo Big Sight Website: www. designfesta.com NOTE: The information has been gathered from third party sources and Sialkot Chamber of Commerce and Industry does not hold any responsibility for authenticity and accuracy in this regard.

21 In today s world, Globalization in indispensable for the economic growth & development of a country. We cannot survive if we are not spreading our economic activities beyond the boundaries of our country. Globalization has had the effect of significantly increasing not only in international trade, but also in cultural exchange and it helps developing nations crop up to industrialized and developed nations. Use of latest communication technologies like internet and mobile has enabled the SME s to jump in the international economic activities. Like other developed and under international trade depends on the satisfaction of consumers at global level. So, we can say that Standards help every business throughout the world to work in a better and smarter way, to improve their proficiency and be more innovative in their products and to ensure product quality and customer demands. There are some areas where standards have particularly important impact on consumers e.g. providing services, wellbeing & safety, inclusivity, sustainability and the security. Standards affect all of us as consumers, every day of our lives. Whenever we use a efficiencies, enhance consumer protection and confidence by following the particular standards regarding the products and consumer s demand. Major trade partners of Pakistan are United State, European Union, China IMPORTANCE OF CERTIFICATION developing countries, Pakistan is also actively participating as it has great share in exporting products (surgical and musical instruments, textile and leather products, sports and sportswear, cutlery items, Rice and many other food items etc.) as well as it is ranked at the 62th position in FDI friendly countries. Globalization has set new standards of international trade within the potential seller to showcase his products to buyer across continents, within no time. It has opened up new avenues of trade, growth and sustainability. However, it has also created the need for following new quality standards. Ultimately, success in product or service, standards cover all the aspects of it, whether we re using a mobile phone, sports articles, purchasing a leather jacket, paying bills, eating in a restaurant, making an arguments etc. There are standards for all kinds of things. In simple words, standards make things better, safer, higher quality and easier to use for the ultimate consumers all around the world. We know that our customers are related to many cultures as they have different ideas, needs, wants & taste, which poses a challenge for businessmen to satisfy the consumers and to achieve the ultimate target to capture the global market. n global market, Pakistan can obtain the desired goals as; enhancing the international trade, providing a framework for achieving economies,

22 Engineers), Automotive Industry, ISO (International Organization for Standardization), ISO/IEC (The ISO/IEC Directives define the basic procedures to be followed in the development of International Standards and other publications), Nadcap (National Aerospace and Defense Contractors Accreditation Program), NELA (National Environmental Laboratory Accreditation Program), NFFS, Quest Forum (Quality Excellence for Suppliers of Telecommunications), Railroad Industry, SAE (SAE International is a global association of engineers and technical experts in the aerospace, auto motive and commercial-vehicle industries.)etc. It results into perceived higher quality product/service. But unfortunately, Pakistan fails to adopt these standards completely, mostly SME s in Pakistan do not comply with respective standards due to lack of proper knowledge and awareness about the value of these standards and certification as they enhance the worth of the business in international market. Pakistan can increase its export share through proper standardization and certifications. It is very unfortunate that Pakistan fails to gain maximum benefits from GSP+ status granted These systems and standards define and originate an organization's policy and objectives. It also allows an organization to document and implement the procedures needed to attain their goals. Awareness of these standards and certifications ensure that procedures are carried out consistently and accurately and companies can continuously review and improve its procedures, products and services. The primary value of this certification is consistent delivery of a product or service to a defined standard and improved bottom line performance. Iby European Union in 2013 to promote the exports. This status has opened the door of exports to European Union, so we can avail this great opportunity by winning the confidence of our customers through proper certifications of our products and services from the concerned bodies. We are 62th FDI friendly Country in the world, but through proper certifications we can also enhance our FDI all over the world and pave the way for development & success. American Society of Mechanical

23 MICRO FINANCING THE GATEWAY TO SUCCESS Over 80% of the business population in Pakistan consists of SME s making them the major stakeholders in the economy. But unfortunately, this staggering segment faces a crunch of finances owing to the lack of appropriate awareness regarding financial facilities. There are so many doors to knock but what s the proper gateway to that door needs to be highlighted. This article serves to educate the SME s and budding entrepreneurs about micro financing. Micro financing is a type of banking service that is provided to jobless or low income individuals or groups and budding entrepreneur who would otherwise have no alternate means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing means of saving and borrowing money and insurance. Microfinance is the supply of loans, savings, and other basic financial services to the small scale entrepreneurs as these financial services usually involve small amounts of money. The term "microfinance" helps to differentiate these services from those which the commercial banks provide. Micro financing is not a new idea. Small microcredit operations have existed since the mid-1700s, when organizations, such as Grameen Bank of Bangladesh with the microfinance pioneer Mohammad Yunus, started and shaped the modern industry ofmicro financing. At that time a new wave of microfinance initiated and introduced many new innovations into the sector. A micro finance institution (MFI) is an organization that provides microfinance services. MFIs range from small non-profit organizations to large commercial banks working over the last few decades. In Micro Financing institutions, there are three types of cost to cover at the time of advancing micro loans. The first two, the cost of the money that it lends and the cost of loan defaults, are proportional to the amount lent and the third type of cost, transaction costs is not proportional to the amount lent. All loans advances by the MFI require roughly the same amount of staff time for meeting with the borrower to appraise the loan, processing the loan disbursement and repayments, and follow-up monitoring. Micro financing institutions and programs have been initiated for serving very small scale businessmen and the poor clients in order to boost their economic condition but; the MFI s excessive concern for profit in microfinance has led MFIs away from poor clients to serve better-off clients who want larger loans. Over 50 million people around the world are clients of microfinance but there are another 2.5 billion individuals who don t have access to financial services. Pakistan, also has a long history in micro financing field as there are many top list MFI s working in Pakistan e.g. Khushhali Bank Limited, NRSP Microfinance Bank, Tameer Microfinance Bank Limited, First Microfinance Bank Pakistan, Finca Microfinance Bank Limited, U Microfinance Bank Limited etc. Pakistan is one of the few countries in the world, which has a separate legal and regulatory framework for Microfinance Institutions. The framework allows Microfinance Banks (MFBs) to extend microfinance services to the poor and their micro enterprises. The favorable policy environment coupled with rising acceptability of microfinance as a viable business proposition has been instrumental in attracting greater private sector interest in establishing MFBs. Our industry infrastructure is getting larger which requires improved risk management practices. Mainly this sector made development and grew globally by taking new initiatives of transformational branchless banking which leverage postal networks and mobile phone technology for expanding cost efficient financial services to the unbanked people. As a development tool, microfinance is considered to be one of the momentous financial resources for poor people to conduct income generating activities, which can decrease their vulnerability and permit them to mount up capital and hold valuable assets. On the other hand, microfinance is also a mean of helping micro entrepreneurs to spread out their businesses to the peak of becoming viable business and suitable for credit from commercial banks.

24 Micro Finance is the powerful tool against the Vicious Circle of Poverty of an economy Other services like Branchless Banking, Low Cost Housing Finance, Health Micro Insurance, ATM, and SMS alert, E-statement etc. All these potential services are framed only for smoothing the way of economic activities and the real benefit is that all these processes of depositing money or obtaining loan are done through very easy documentations. It is easy for small businessmen to deposit money with some common documents e.g. CNIC, Zakat declaration (if applicable), Copy of utility bills, Proof of source of income etc. Micro Financing is also playing a vital role for women empowerment which would prove to be a stunning step for the development and economic uplift of women entrepreneurs. This would give them more power for decision making, creating more economic opportunities and self employment within their given resources to contribute the stream of economic success. But still there are many challenges to eradicate and to get the opportunities and benefits of Micro Finance like, limited financial literacy, limited institutional capacity among MSIs, limited information of client needs, Weak legal infrastructure, Product cost-structures, Limited know-how of mainstream providers, Appropriate funding, Financial regulatory priorities, public mistrust of financial institutions, Client risk, fear among small businesses about hectic banking procedures, lack of financial documentation preparation by small businessmen, no proper liaison between banks and SMEs and demand of securities and mortgage by banks and insufficient information about daily KIBOR rates etc. by working on these issues, Micro financing can serve as a valuable instrument to grow self sufficiency and to eliminate vicious circle of poverty by growing productive economic activities. In micro finance banks, bundle of facilities are provided on easy terms and conditions to the small scale businessmen; providing different types of deposits (Sahulat Current account, Bachat Account, Mahana Munafa Term Deposit, Mustakbil Term Deposit, Aitmad Savings, Rozana Munafa, Muhaafiz Term Deposit, Easy sona, Shajar, Supper Saving Account etc.). loan offerings for the small scale entrepreneurs to start, run and grow their businesses (Karobar Loan, Sarmaya Loan, Gold Card Loan, Group Loan, Agri Financing, Dairy Financing, Live Stock Financing, Solar Financing, Micro Enterprise Loans, Kamyab Karobari Qarza, Maal Maweshi Qarza, Raqam Barwaqt, Sunehri Qarza, Zarai Qarza, Sahara Loan, Khushali Kisan Loan, Fori Cash Loan etc.). Uncomplicated process documents are required by MFI for advancing different types of loans e.g. CNIC of borrower, CNIC of guarantor, Copy of utility bills, Business transactions evidence (if possible), Loan Application form, Promissory note, Shroff certificate for gold only, Copy of latest utility bills / tenancy agreement or any other document qualifies as residence proof, Business place photographs where the income generation activity is being taken place (optional), Promissory Note, Business & Residence proof. Salary proof in case of salaried individuals, Animal Health Certificate from Vet, Letter of Pledge, and Proof of running business, Copy of latest utility bills / tenancy agreement or any other document qualifies as residence proof etc. All these documents are easily approachable and accessible by small scale entrepreneurs for the different types of deposits and advances that fulfill the purpose of facilitating the small and inexperienced businessmen. Khushhali Bank Limited Tameer Bank: Phone #: Address: Allama Iqbal Chowk, Railway Road, Sialkot. Website: Phone #: Address: Small Industrial Estate, Near Alam Chowk, Shahabpura road, Sialkot. Website: Waseela Bank FINCA Bank Phone #: Address: Shahab Pura Road, Near MCB Shahabpura, City Tower, Sialkot. Website: Phone #: Address: M.A. Heights, Defence Road, Sublime Chowk, Opposite WAPDA OFFICE Sialkot. Website:

25 SPOTLIGHT on Women In Business One of the biggest growth markets in the world may surprise you. You have heard about the opportunities opening up in countries like China, regions like Asia, and industries like green technology. But one major emerging market has not received the attention it deserves: women. -- Hillary Clinton. Former secretary of state. This statement of Hillary Clinton speaks volume about the significance of investment in women, who constitute the majority of the world s population. In developing countries like Pakistan the empowerment of women is not only crucial for the nurturing the economic conditions but also to soften its image internationally. It is a common phrase that women are agents of change these agents need to be encouraged and provided favorable platforms to instigate change for the betterment of our economy. Future belongs to women and women s empowerment will be front and center in the coming years as more companies, communities and organizations invest in women s entrepreneurship. Increasingly, they recognize what organizations like SCCI already know: that women are crucial to economic growth around the world. Women entrepreneurs see the business world through a different lens and, in turn, do things differently. This is reflected in the kinds of businesses they start, whether it s Oprah Winfrey, whose media business focuses on helping women to reach their potential, Mussarat Misbha, who turned her passion into a beauty empire, Dr. Maryam Noman, Director Capital Sports who translated her dreams into reality or Shamsa Kanwal, a blind yet courageous woman who took her disability as an inspiration and started an NGO Sufia Foundation to help her fellow human. Despite some living examples of successful women in business we have a very long way to go in this respect. Sialkot is said to be City of Opportunities but is unfortunately the industry where women barely take part at all. Even when women are active business owners, they do not reach their potential as they restrain from taking membership of organizations like Sialkot Chamber of Commerce and Industry that could facilitate them in running a successful business. So the need of the hour is that women come out of their restricted zones and break the taboos and play the role that is fundamental for gearing up their living standards and in large the economic conditions of the country. Women entrepreneurs require confidence, leadership and managerial skills for accessing their potentials. Starting a business as a woman offers the Omnichallenges of learning how to effectively operate the activities of such business while simultaneously attempting to meet all other expectations that are part of entrepreneurship. Women Entrepreneurs could improve their performance by increasing their effective leadership skills, they need to equip themselves to face the challenges of today s economy and business world. It would not be wrong to say that we are living in an era of change, and this era requires women to come out of their kitchens and living a life of their own. They must be motivated and encouraged to embrace newer avatars, as that will pave way for a better tomorrow For all the women entrepreneurs out there or women who aspire to be entrepreneurs, I would like to quote Mary Kay Ash, founder of Mary Kay Cosmetics. Don t limit yourself. Many people limit themselves to what they think they can do. You can go as far as your mind lets you. What you believe, remember, you can achieve.

26 If we cannot begin to agree on fundamentals like elimination of child labor then we really are not ready to march forward into the future There are thousands of children who are deprived of the most basic necessity of life EDUCATION owing to the poor financial conditions their families are trapped into. These little angels are forced to kill their aspirations and are pressed to earn a living. It s a harsh fact that these children have to put their innocent desires at stake to sustain the economic status of their families in order to make both ends meet. Their childhood fades away in the desperate conditions they face every passing moment. When a child in addition to getting education, earns his livelihood, this act of earning a livelihood is called child labor. The concept of child Labor got much attention during the 1990s when European countries announced a ban on the goods of the less-developed countries because of child Labor. Business is not an isolated activity of individuals. It owes its existence to the society, and is responsible to contribute as much as it can to the society in return. Sialkot Chamber of Commerce and Industry has acted profoundly in the enrichment of society through several CSR initiative, one of them being the Child Labor Elimination Program for Soccer Ball Industry. The Project has successfully eradicated child labor and also rehabilitated the children removed from work by placing them in schools. We are pleased to mention that the industry has been purged of child labor ever since, as a result of strict monitoring of the program. The program was a result of a unique partnership which was developed amongst Sialkot Chamber of commerce and Industry (SCCI), United Nations Children s Fund (UNICEF) and International Labor Organization (ILO) to eliminate Child Labor from the Soccer Ball Industry of Sialkot on 14th February, 1997 at Atlanta Georgia. There hardly exist an example where the export oriented Industry has taxed itself to eliminate Child Labor. This Project has been instrumental in prevention and monitoring and further social protection & rehabilitation of the less fortunate children. Since its inception July (2002), CSDO has implemented various projects with the financial, technical, and intellectual support of UNICEF, ILO and FIFA, SCCI and business community of Sialkot. In order to proactively prevent and eliminate Child Labour, CSDO has been providing formal & non-formal education, vocational skill training, recreational and psychosocial support to the marginalized children and adolescents as well as raising awareness among the community on child rights and protection issues. So far, hundreds of children who were at risk of abuse and violations have been benefited. Currently, in collaboration with the Punjab Education Foundation and with the support of export oriented industry of Sialkot, CSDO is running 17 schools in backward areas of Sialkot and its adjacent Districts; Gujranwala and Narowal, to provide free of cost education to out of school, working and the underprovided children. Presently, in these schools around 2000 deprived children are getting education. In November 2013, Pakistan was granted with GSP+ status by the EU for duty free access to all Europe for a limited period of time. However, it required several conventions for Pakistan to follow for its extension, one of them was taking initiatives for Corporate Social Responsibility. It is a sad fact that the Government has not done any significant work in this regard. However, Sialkot Chamber of Commerce & Industry welcomes all the stakeholders of the Industry to join hands for taking initiatives on CSR and presents the model of CSDO for every Industry in Pakistan not just for the sake of corporate social responsibility but for our children, our assets and our uncut diamonds!.

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